Analyst: Current Volatility Isn't a Surprise

Paul Vigna and Ryan Detrick discuss the strength of the bull market, and Telis Demos looks at why some companies are waiting until after Alibaba's IPO to hit the market.

This transcript has been automatically generated and may not be 100% accurate.

... in mm mm mm mm mm ... good morning welcome to MoneyBeat I am Paul vignette ... U S stocks are modestly higher this morning first hour of trading ... see the Dow up forty points the others are also in the green as that ... twenty three points half a percent there ... we had this morning I industrial fraction came out with high expected producer prices ... still Loews Uno inflation concerns in the pipeline their ... market like all that you can see what you getting ... however it has been a violent I'll bought this August for stocks ... somewhere in Iowa City lately ... see It Market strategist Brian he says ... there's good reason for that he joins us this morning with the explanation for INTC and good ... the new gig overseas market now ... thank you Paul Pritchard ... let's talk about all of his time ... and for ... all these months the for the market ... you land lines out there and it was in love again and again and stepped down ... on ... but these monster ... creature there on the ... way sure our and we look back since nineteen fifty pull all this in September the only two months back to back average and a return so ... you know there is a seasonal effect of the big concern I have to all this in nineteen eighty the look of just in a few months which when the mother's native what to do all this is the most naked on four point six six percent sort all this is now ... it's really how ... you look back in seventeen ninety directing ninety seven the Asian thing ninety eight Russia ... issues of all the geopolitical things seem to happen all stick with a random sure for now here we are all this again we've gotta love these geopolitical things floating out there so it's ... to think ... that all these things happen will happen in August when the third reason is there some kind of market structure for marketing Purnell ... who was going on in the market so it seemed one thing I did share one thing that makes more sense to me is all this is usually ... the morgue for work since all palpable teams like see you know that it was around so summertime into the summer so we haven't even if you can actually have more will still be good people in all my goodness look what just happened in the boys' homes in real fast and that's where the kind that city works and it was moving market exactly and in the right so it's been the most sense to me ... Waddell has come about when Friday's so yesterday was the third most find a seat on the video on the reason God overnight nailed the light yet but a Monday morning news overseas order to avoid a comeback that way now so it ... was so that no one ate too much to VC in August and September ... I would imagine that your your conclusions weren't enough but one thing but if you lose piece you pointed out ... that this current bull market ... is is already the fourth longest on record ... on ... that's pretty interesting when you when you do want you to be sure well I mean ... when you look at him ordinances bull markets can hold its a reason to be Warren Anderson true that when I go back there was a sixty five months old this bull market we've had three other bull markets actually wanted a hundred fifty Matson so you know yes it's that whole minus its more mature and are still ... potentially view will take a few going ... nice that Essen P five hundred up six quarters in a row ... nineteen fifty this happen four times ... three of those times it was up another four quarters in a row with fourteen fours are on the nineties on Etsy and have that my point is yes we've had a ... really great shriek ... in this bull run but that doesn't mean you have to be ... the super bearish because is gone for so long why is it happening there still a question always look good times come around to ... isolate themselves sentiment in with a four percent correction recently ... well it somewhat simple certainly a lot by my pool can almost Bayer some slashing the year all this emerging ... investors held informal was nondurables since the early February lows the calendar year lows of these little modest pullbacks Solis is the big one ... all this is scary I agree with that kind of boys don't appear in the going will happen we're not doing well again you talk about that and talk about outflow since I mean you know when prices go down deserve it right ... I'm people pulling money ... well that's that's a great point you that the ICI domestic initial fund flows from all this was the most Leopoldo for money outflows since December two thousand twelve so we look at right now given to talk about that right so you know people get worried how were they plan to meet let's be honest those initial fun so much money is leaving the two phones one into ETX before Senate on to do it myself driving seventy because before taking more ... you know ... taken advantage of do it themselves is a good thing but still does what kind of a seat that can transport of U ... is the lack of trust the Wall Street was Beyonce's still there and then read to themselves but still find that having her fall ... today ... it sure you still see it ... on heels all are ... extremely low that this is the isthe edge of the family ... I so that a new this morning and two three nine when ... the European bond yields are just what the chart below I mean people worse even at that those numbers ... people still put money into bonds while ... well ... I've ... that figure ... overall the look on it's it's kind a contrary point of income is your no one expected the prep we'll know all the sudden or services with close money for worthy of Mitchell funds into on the money's coming in ... the oh why is it ... lots of different arguments might signal that the TLT ... you know that that's over to the twenty year Treasury yes yes on so that when people look at ... it continues a love that it's going up that the thing we've heard for months now was it was a great dish year that's going to bear the stock market hasn't been yet you know could be eventually ... maybe for my point is the old saw farmers do ok here this year bonds' the review will or ... can continue CEOs historically speaking the cab on all the same time for years before ... so it's not bearish for stocks would be much of a warning that it is a way to go there we couldn't serve have to ... give the risk takers health and safety seekers of all to Nareit tissue ... interestingly that is overstated and even a new commodities into the wall for sure so I Ryan thinks could say I ... thought the next time a New York thank you ... when we come back spring has the work done on a new pricing plan ... you are going to love it and we will talk about the insects ... welcome back spring appears set to go or no phone company and Dom before but an extremely low priced mobile plan that aims to seriously ... undercut the competition but ... can the telecom make it paid off trying to not sin is here with deatails ... on Ryan wrote the story ... it was the key to what is for doing ... well spring is trying a ... few different Preston Lions they just got a new CEO last moon ... I mean is going to try to hit the ground running today working on their network for ... several years in a filing fee like is that a point where the concert ... aggressively inviting customers back on and so they've been trying out a couple different pricing plans ... one of them is just fifty dollars a month for unlimited talk text and data ... that's thirty dollars cheaper than what T Mobile offers for the same planning tools in the price in the market ... I'm that's an extremely attractive offer ... I'm sure a lot to like that ... how can they offer that will have the money on ... well I guess it remains to be seen in there that some of the other plans that they're offering are less aggressive and do more to just basically match with eighteen T and Verizon are offering ... aam to do so by offering more days of places you can get for a hundred sixty dollars a month ... family plan for alliance with ... ten gigabytes to share with a different and Verizon ... when the plans that Ryan would be twenty gigabytes of spring but ... become Brisbane cash flow negative on for awhile now they haven't made a profit ... since two thousandseven on an annual basis so ... there that is their hope is that by adding more customers they'll be able to ... be no ... increase in their customer base will open ... now ... we'll SoftBank came in and bought up spot last year we know that that everyone in this the sector ... trying to figure out what mergers are gonna wanna obviously there's a lot of churn within the companies in the sector ... on is this planner of response for all that is this table setting role that made ... his plea into the bigger picture well when he was assigned to the ... CEO of SoftBank acquired spring everybody is considered a telecom Janes never did problem with the to do ... turns out the first line of business was trying to acquire T Mobile so a lot of the time and energy was spent focusing on that and there wasn't really a lot of aggressive behavior at Sprint ... but now that he's decided to scrap the plan to install his guys CEO ... I think we're going to really start to see what you know what's pleases me yet ... Ryan great stuff thank you very much ... when we come back Alibaba maybe you heard about them and then in an IPO a big IPO so big ... crowding out some the other companies on the IPO's ... talk about next built up some Alps ... welcome back alley Baba the massive IPO set for sometime after Labor Day ... Mami or a Christmas present for Wall Street bankers ... turning into a headache for some the other companies on the other on IPO's ... tellers D most broke the story is here to talk about it ... I know that you would think aam on the first plan said ok will tonight consisted of just a deal that is putting stock out there why why is this the other numbers in the twenty billion ... Copel YS is dual them ... with his nation from four because the international nature of the copyrights Chinese company listing in the U S and ... global ambitions there to sell this deal ... all around the world in IPO's differ from an old normal stock offering me just call these holders and say hey guys wanna buy more stock at ... an IPO Google introduced a company the people of the world ... with Alibaba particular ... obviously it's a huge ... e-commerce company people use it everyday in China ... at that well known as silly outside China people don't use it so they've gotta go round with a really have to fly to you know five six cities around the world of into the Roadshow and ... in Asia the Consumer North America into in Europe so ... you know it is literally sucks up the time and energy and thanks Salesforce's do this deal and other companies ... want nukes it want that kind of attention to an in line and get a one-time loves it and that had been standing there in reading the Fed is the thing that really fast but that means is that ... the sizable force that is being more full on Wall Street filled this ... is me I mean some of the biggest IPO may be all caught him is really cute I had people estimate you know ... really like thousands of people working in the seal between the lawyer years between each deal team between the ... internal teams of the big investment houses that are looking at this a mean it's ... it's hours and hours of of of work for a lot of people and ... the other factors that you know the the investment firms normally when you pitch IPO you go talk to one portfolio manager one analyst on Tuscan one Dylan and talk to ... for five different analysts and portfolio manager so you normally you could be in that you know ... over Fidelity history from banks and building in three different Rioforte isn't IPO's ... you can't do that Nestle and the so the company that within the medical an IPO ... that maybe are now going to do it is that ... has been hurt and is adjusting to lean on him ... who does isn't all monies is cost them something what's the effect of the ICS risk to the ATO up if if Alibaba goes spectacularly well if the stock as rates is everyone's in love with the way to deal once ... you might see kind of positive Chi flow back to other write this ... if the deal was little trickier if it doesn't go as well ... I think that will have a really negative effect on the market people will simply Alibaba consumer accurate when chances for these guys that's I think I think is as an onerous aren't ... leave it that often thought thanks ... finally today from forty five years today since the same as Woodstock music festival in the small town near Bethel New York ... in the spirit of that iconic weekend in eighteen sixty nine ... still alive and well and Max he adds his dairy farm level up ... at first glance there's nothing remarkable about this quiet field in Bethel New York ... but forty five years ago it was a very different scene ... in nineteen sixty nine he was home to three days of peace and love ... also known as Woodstock ... the organizers expected forty thousand people to attend a three day music and Arts Festival ... over four hundred thousand showed up ... and it's estimated that twice as many were stranded on the road trying to get to the site ... there is no doubt that it was a seminal moment for those who attended the festival during those three days ... and for some ... the that still resonates almost half a century later ... the idea that the ... storm sixteen oh you know and enjoy the joy that weakens the thing you know ... but I never left ... give the devil and his interpreter for the site ... he's been right here in this spot since he was hired by the Bethel Woods performing Arts Center in nineteen eighty four ... explaining what happened here ... only unique point of view ... the hosts who called for ... on this farm and the Justice one in nineteen sixteen ... knows she'll never strike a few books ... that took place right here on ... the typical small world Ford will continuously ... not just the nice people so sunny it can lead to a ... middle and what companies can ... sweep in the snow off the ... money and think ... with overcrowding no facilities and little on Forstmann ... Eve it could turn into a disaster ... but here's the thing ... not so much as a scuffle occurred during the concerts green rain soaked days ... today there is a performing arts center and Museum at the top of the hill ... but if the iconic feel that attracts most people ... they come ... they walk the steep hill that forms the natural at the theater ... they take pictures ... and the tree ... what is it about this in the field that keeps drawing visitors forty five years after the event ... good sense of community that we had an analyst with ... his Rustrum though I am new annuity ... Louis Koo and I think that ... is going to improve on it ... you know ... it's just that ... you go from third place ... it's that good news is a magical ... that is it for MoneyBeat Port a comeback at noon for lunch break with Tanya Rivero right here on WS J live I'm Paul vignette have a great weekend ... peace ...